06.07.2018 Bulgarian and China Development Bank signed agreement for EUR 1.5 billion

An EUR 1.5 billion framework agreement for the Bulgarian Development Bank (BDB) was signed today by Stoyan Mavrodiev - Chairman of the Managing Board and CEO of BDB and Mr. Hu Huaibang - Chairman of the Management Board of China Development Bank (CDB) at the Marble Hall of Council of Ministers of the Republic of Bulgaria.
This agreement sets the guidelines to the future cooperation between BDB and CDB, including a financing under the “One Belt, One Road” initiative for the upcoming 5 years. It represents the largest portion of the CDB initiative under the China-CEEC Interbank Association. China will secure EUR 2 billion for all CEE countries that are members of “16+1” framework, with nearly 75% out of those funds being provided for Bulgaria. The agreement between the two financial institutions is part of the official agenda of the Seventh Annual Meeting of China’s and CEE’s Heads of Government.
These funds will be used for bilateral loans from CDB to BDB, co-financing, project financing, private equity financing, syndicated loans, projects of mutual interest and other projects between BDB and CDB.
"Due to the successful cooperation with the Chinese financial institutions, BDB can become an investment banking center, which will give a chance to many great projects, previously suspended or postponed due to lack of funding.
There will be an opportunity for those projects to be implemented with syndicated loans, in which BDB will be only one of the participants "- explained BDB’s CEO.
These funds are a substantial financial resource to support the Bulgarian business and to encourage the entrepreneurship. The projects may include support for SMEs, energy, communications, transport, agriculture in Bulgaria.
According to Stoyan Mavrodiev, the Bulgarian Development Bank is discussing with the leaders of the Chinese Development Bank also the possibility of creating joint equity funds to support the development of start-up businesses in Bulgaria.
BDB’s host role at the first meeting of the China-CEEC Interbank Association, which took place on July 3rd and 5th in Sofia, proved that the 16 + 1 format is a platform capable to enable the investment cooperation and partnership with the development banks.